The Michigan National Career Readiness Certificate: A Response To the State’s Economic Transformation ACT State Organization 2010 Annual Conference February 2, 2010

Presented by Dennis Dunlap, Ph. D., Associate Superintendent for CTE, Gratiot-Isabella RESD Keenan Wade, Business & Industry Section Manager, Michigan Department of Energy, Labor and Economic Growth

Program Goal Upon completion of our proposed session; participants will have a better understanding of the Michigan National Career Readiness Certificate (MI NCRC) and how it can impact the transformation of the state's economy though skilled labor data.

Accomplishing Workshop Goals Description, background and evolution of the National Career Readiness Certificate Impacts of the NCRC; How the certificate benefits the employer, the educator, and the individual Michigan’s Journey: A historical perspective Michigan Results Summarization and Questions

Accomplishing Workshop Goals Description, background and evolution of the National Career Readiness Certificate

“In the 1950’s, ACT created a nationally recognized, standardized resource for college entrance. Now, we’re doing the same thing for the workforce.” - Richard L. Ferguson, CEO and Chairman of ACT

What is a Career Readiness Certificate? A portable, performance-based credential that documents and certifies an individual’s ability level to learn / perform occupational specific skills. An reliable resource for employers to make effective employment and training decisions. A common language to connect educational programs with the needs of today’s world of work. A valuable economic development source for retaining businesses and attracting new employers.

National Career Readiness Certificate Origins

NCRC STATE CRC STATE ACTIVITY REGIONAL WORKKEYS ACTIVITY LIMITED WORKKEYS ACTIVITY Certificate Programs Today

Career Readiness Certificates Reading for Information Applied Mathematics Locating Information

SKILL AREAS JOB PROFILES Locating Information Reading for Information Applied Mathematics Observation Teamwork Applied Technology Writing Listening Business Writing 85% 81% 75% 70% 38% 18% 17% 14% 1%

National Career Readiness Certificate Levels & Employability - Core employability skills for approximately 30% of the jobs -Core employability skills for approximately 65% of the jobs -Core employability skills for approximately 90% of the jobs -Core employability skills for near 100% of the jobs Gold Silver Platinum Bronze

Applied Mathematics Locating Information Reading for Information

Establishing the Need Evolution of the U.S. economy, complex technology, higher-level job requirements (ACT Report) Workforce Pipeline Challenges: - Shrinking graduate pipeline - Rising immigrant labor - Retiring workers - Smaller world – increased competition - Skilled labor shortages Higher skills demand higher compensation Jobs follow Talent - Talent follows Jobs

Projected Job Openings by Skill Level Source: Dixie Sommers, “Overview of Occupational Projections, 2014,” < HS Diploma: Supply > Demand Post-secondary 25% of WF prepared > Four Year Degree 33% of WF with college degree

Occupational Alignments GoldSilverBronze -Automotive Body Repairers -Butchers & Meat Cutters - Cooks, Cafeteria - Furniture Finishers -Home Health Aides -Housekeeping Supervisors - Janitorial Supervisors -Painting & Coating Workers -Dental Laboratory Technicians - Accounting Clerks -Auto Master Mechanics -Billing Clerks -Licensed Practical Nurses - Machine Operators - Machinists - Medical Laboratory Technicians - Payroll Clerks -Pipe Fitters -Production Inspectors -Computer Programmers -Electricians -Environmental Engineering Techs -Instrumentation Technicians -Librarians -Semiconductor Processors -Training/Development Specialists -Vocational Education Teachers

Higher Skills = Higher Pay National Career Readiness Certificate Levels And Median Annual Salaries (U.S.) Gold OccupationsSilver OccupationsBronze Occupations $62,987$38,022$27,340 Sources: Bureau of Labor Statistics, ACT data “Good jobs will stay where the skilled workers are. Good jobs will go where the skilled workers are.”

Accomplishing Workshop Goals Impacts of the NCRC; How the certificate benefits the employer, the educator, and the individual

Impacts of the NCRC; How the certificate benefits To regain our economy and prosperity, Michigan employers, schools, and families are working together with their communities to create the jobs and employees of the future

Impacts of the NCRC; How the certificate benefits, cont’d. To prepare all students for success in the new global economy, Michigan's’ state leadership have launched a new initiative on behalf of students…

Impacts of the NCRC; How the certificate benefits, cont’d. The National Career Readiness Certificate is intended to complement the high school diploma and other employment credentials

Impacts of the NCRC; How the certificate benefits, cont’d. Portable credential that documents and certifies an individual’s ability to learn and perform occupational skillsPortable credential that documents and certifies an individual’s ability to learn and perform occupational skills An additional resource for employers to make employment and training decisionsAn additional resource for employers to make employment and training decisions A valuable complement to an individual’s portfolio of traditional credentialsA valuable complement to an individual’s portfolio of traditional credentials A common language among stakeholders to address our current skill gap circumstancesA common language among stakeholders to address our current skill gap circumstances

Impacts of the NCRC; How the certificate benefits, cont’d. Occupational and Employability Skills Jo b Specific Skills Occupational Skills WorkKeys Foundational Skills AppliedMathematics Reading for Information Locating Information

What’s in it for Employers? Nationally recognized Aligned to occupational job duties and tasks Predictor of success  Reduced turnover  Reduced training and development costs  Increased return of investment

What’s in it for Employers? Cont’d Reduced pre-employment assessments costs and time Inexpensive—Already part of Michigan Merit Exam (MME) Proof of Readiness

What’s in it the Educator? Uses a common set of skills that can be taught and developed ALREADY part of the Michigan Merit Exam— NOT one more thing

What’s in it the Educator? cont’d “New hires need more math!” “How much more?” The Employer SAYS... The Educator’s RESPONSE...

What’s in it the Educator? cont’d “We need better reading skills.” “How much better?” The Employer SAYS... The Educator’s RESPONSE...

What’s in it the Educator? cont’d We all know these can be endless discussions. This communication problem extends throughout the entire Workforce Development System.

What’s in it the Individual? Nationally recognized and portable—can use it across the state or the country with many different types of employers Demonstrates the ability to apply what you know to job specific skills Allows entrance into higher wage careers while advancing skills and education

Pay by Combined NCRC Scores Pay , , ,68924,16029,57634,97343,39449,69149,08252,461 Combined NCRC Scores With Profile Count $ Bronze Silver Gold What’s in it the Individual? Cont’d

Accomplishing Workshop Goals Michigan’s Journey: A historical perspective

Michigan’s Journey The National Career Readiness Certificate (MI NCRC) Michigan Department of Energy, Labor & Economic Growth

Target Populations & Assessment Michigan Works! Agencies to use three MI NCRC for program participant (NWLB) jobs skills assessment MWAs encouraged to provide MI NCRC assessments to general public as resources allow DELEG/BWT will re-evaluated target population prior to PY 2010

Emerging Workforce (K-12 and Colleges) Transitional Workforce (MWAs and Agencies) Incumbent Workforce Employers DemandSupply

Michigan’s NCRC Journey Career Readiness Certificates revisited in Michigan June 2007: Charge to Michigan Council of Labor and Economic Growth (CLEG) June 2008-July 2009: CLEG Research December – January 2009 CLEG Recommendation & Approval July 2009: Policy Issuance to Michigan Works! Agencies Should Michigan Adopt a Standard Work Readiness Credential ?

Michigan’s MI NCRC Journey Contributing Factors to MI NCRC Adoption CLEG research Michigan Merit Exam (MME) –Added Locating Information Assessment Workforce Innovation in Regional Economic Development (WIRED) Projects –West & Mid-Michigan WIRED –Michigan National Career Readiness Certificate Advocates

Testing Locations Michigan Works! Agency (MWA) Service Centers With justification: –Existing or new partner agencies –Intermediate School Districts –K-12 School Districts –Community Colleges –Other community based organizations

Employability Skills Training AKA “soft” or “interpersonal skills” 12 State skills standards Ex: Teamwork, Conflict Mgt., Diversity, Work Ethic Training components vs assessments Employability skills certificate RD

Accomplishing Workshop Goals Michigan Results

Certificate Goals Over the next four (4) years ,000 residents with MI NCRC’s CertificatesResource 380,000Michigan High Schools +180,000Workforce Development System 560,000 MI NCRCs issued by 2013

MI NCRC Involvement and Stakeholders Michigan currently ranks 3 rd in the United State in terms of MI NCRC’s issued

MI NCRC Applications No Worker Left Behind (NWFB) Road Construction Apprenticeship Readiness (RCAR) initiative Energy Conservation Apprenticeship Readiness (ECAR) initiative Building Trades Apprenticeship Programs - Carpenters, Masons, Iron Workers Fast Start (Chemical Operator Training) MI Prisoner Re-entry Initiative (MPRI) (Corrections)

MI NCRC Results & Update Implemented in Workforce System Alignment with K-12 Over 12,000 certificates since July 1, 2009 Michigan # 3 in country with over 80,000 certificates Partnering with economic development More employer engagement in 2010

What Employer’s Say……. “In our mission to hire, train, develop, retain, and support life-long learning of diverse qualified associates. The National Career Readiness Certificate, and the related WorkKeys assessments will continue to be an absolute resource in recruiting the right candidates to be successful through the career ladder at CVS/CVS Pharmacy/CVS Caremark.” — Lena Barkley, Manager, Workforce Initiatives CVS/CVS Pharmacy/CVS Caremark

What Employer’s Say ….. “The National Career Readiness Certificate, consisting of the related WorkKeys® assessments and learning systems, have been invaluable in helping us to hire and retain world-class employees, with the foundational job skills needed to be successful at Dow. We have proven correlations between high scores in WorkKeys® and employees’ ability to quickly learn on the job technical skills.” —Jennifer Hayes, Michigan Operations Project Leader Dow Chemical Company

Accomplishing Workshop Goals Description, background and evolution of the National Career Readiness Certificate Impacts of the NCRC; How the certificate benefits the employer, the educator, and the individual Michigan’s Journey: A historical perspective Michigan Results Summarization and Questions

For More Information Michigan.gov/MINCRC TheCertificate.org